Special Session 2007 - ABX1-1 Update

Governor Arnold Schwarzenegger and Assembly Speaker Fabian Nunez have negotiated a compromise on comprehensive health care reform, Assembly Bill X1-1 (Nunez). ABX1-1 passed the State Assembly on December 17, 2007 by a 46-31 vote, largely along party lines. ABX1-1 describes a framework of health care reform, but does not include the any provisions related to financing the $14 billion cost of the package. Funding will be addressed in a ballot measure supporters of ABX1-1 are seeking to qualify for the November 2008 ballot. Implementation of ABX1-1’s provisions are contingent on passage of that ballot initiative.

On January 23rd, the Senate Health Committee held an eleven hour hearing on ABX1-1. Dozens of witnesses provided input on every aspect of the bill. During that hearing the non-partisan Legislative Analyst’s Office (LAO) reported on its analysis concerning ABX1-1’s impact on the state’s finances. Among the LAO’s findings is that ABX1-1 is likely to run up a $4 billion deficit in its first five years of operations.

The Senate Health Committee is scheduled to vote on ABX1-1 on Monday, January 28th. If approved by the Committee, the bill would next be heard by the Senate Appropriations Committee and, if successful there, would be voted upon by the full Senate. Assuming the Assembly concurs in any changes made by the Senate, the bill would be signed into law by Governor Schwarzenegger and attention would then turn to the financing initiative. On the other hand, if the legislation fails in the Senate it is likely elements of the bill will re-emerge in separate bills introduced later in the session. In either case, ABX1-1 will influence the health care reform debate in California for a long time.

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